We have assessed the applicability of the Differential Inversion (DI) method to temperature retrievals in both clear and cloudy atmospheres using real satellite data. The main theme of the DI is that the local Planck intensity can be exactly expressed by a linear combination of the derivatives of radiances in the logarithmic pressure coordinate. The satellite data set used in this work contains collocated brightness temperatures and radiosonde data which have been collected during the period of BUAN experiments. A multi-spectral cloud-removal method using the principle of the N* - method has also been developed. Retrieval results are presented in terms of rms temperature differences between retrieved and sounding profiles. Considering all clear and partly-cloudy cases, the rms differences in temperature of approximately 2 K for retrievals using the DI are comparable to those using the BUAN scheme. The rms differences in temperature for retrievals using the multi-spectral cloud removal scheme are slightly larger than those using the BUAN cloud-removal scheme by approximately 0.5 K. Finally, the rms temperature differences are much smaller than those for the BUAN first- guess.